EUR/USD Spike Fills Gap before Tank Job
Chart Prepared by Jamie Saettele, CMT
-More whiplash!? Recent comments noted that “one reason to suspect that the drop under the trendline was a trap is that USD/CHF poked to new trend highs and reversed while EUR/USD held the low. This non-confirmation of USD strength warns of a more important inflection point.” EUR/USD spiked into the year open price (to the tick) before plummeting on Thursday (also filled the gap from mid-Novmber). Post Italian referendum and ECB, EUR/USD is basically unchanged on the week. Confidence in any direction is nil at this point but the burden of proof is certainly on the bull side given the harsh rejection at the year opening price. In the event of a break, there is a parallel to be aware of just under 1.0400.
Join Jamie for a free webinar on Friday.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.